Dublin, Nov. 26, 2021 (GLOBE NEWSWIRE) -- The "Conversational AI Market by Component (Solutions and Services), Type (Chatbots and IVA), Technology (NLP and ASR), Business Function (Sales and Marketing, and Operations), Mode of Integration, Vertical, and Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
The global conversational AI market size to grow from USD 6.8 billion in 2021 to USD 18.4 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 21.8% during the forecast period. Various factors such as increasing demand for AI-powered customer services, omnichannel deployment and reduce chatbot deployment cost, and rising demand for
AI-based chatbots to stay informed and connected during Covid-19 are expected to drive the growth of Conversational AI market
The COVID-19 pandemic has impacted trading activities across regions. It has had a moderate impact on all the elements of the technology sector. The hardware business is predicted to be the most impacted in the IT industry. Owing to the slowdown of hardware supply and reduced manufacturing capacity, the IT infrastructure growth has slowed down. Businesses providing solutions and services are also expected to slow down for a short period. However, the adoption of collaborative applications, analytics, security solutions, and AI is set to increase in the remaining part of the year. Verticals such as manufacturing, retail, and energy and utilities have witnessed a moderate slowdown, whereas BFSI, government, and healthcare and life sciences verticals have witnessed a minimal impact.
The Cloud segment to have the larger market size during the forecast period
Conversational AI market is segmented on the basis of deployment mode which includes on-premises and cloud. The cloud segment is expected to account for a larger market share during the forecast period. Using cloud-based applications, SMEs can collect and analyze data easily to improve their customers' experience. Organizations with more reliance on data security and privacy move toward the on-premises deployment mode to gain more control over their data and its security.
The SMEs segment to hold higher CAGR during the forecast period
On the basis of organization size the Conversational AI market has been segmented into large enterprises and SMEs. The SMEs segment is projected to record a higher CAGR during the forecast period. Verticals focus on adopting technologically advanced solutions and processes at a lower cost would drive the adoption of conversational AI solutions and services among SMEs. The availability of conversational AI technologies such as AI, ML, and deep learning will enable large enterprises to offer employees insights about customers' buying behavior for a better customer experience.
The web-based segment to have the largest market size during the forecast period
On the basis of mode of integration, the conversational AI market has been segmented into web-based segment,app-based segment and telephonic. The web-based segment is estimated to hold the largest market size during the forecast period. Conversational AI offers round-the-clock customer service as it answers commonly asked customer questions, resolves problems, and provides solutions in real-time. The app-based segment is expected to have the highest CAGR during the forecast period as conversational AI enables brands to detect consumer intents in real-time, build chatbots to fulfill those intents at scale alongside human experts, and deploy these AI-powered engagements across the most popular messaging channels.
Among regions, North America to hold higher CAGR during the forecast period
North America is projected to hold a higher CAGR during the forecast period. In North America, conversational AI solutions and services are highly effective in most organizations and verticals due to the increasing need to handle customer queries and enhance user experience. Europe is gradually advancing toward incorporating conversational AI within its market. APAC is showing a substantial rise in the adoption of conversational AI solutions and services during the forecast period, while Latin America and MEA are slowly picking up conversational AI due to its benefits for various industries to get user insights.
Attractive Market Opportunities in the Conversational AI Market
Increasing Demand for AI-Powered Customer Support Services to Drive the Growth of the Market
Operations Business Function to Grow at the Highest CAGR During the Forecast Period
North America to Hold the Largest Market Share in 2021
Web-Based Mode of Integration and Sales and Marketing Business Function to Account for the Largest Shares in the Market in 2021
Increasing Demand for AI-Powered Customer Support Services
Omnichannel Deployment and Reduced Chatbot Development Cost
Rising Demand for AI-Based Chatbots to Stay Connected and Informed During COVID-19
Increasing Focus on Customer Engagement
Lack of Awareness About Conversational AI Solutions
Inability to Recognize Customer Intent and Respond Effectively
Integration of Advanced AI Capabilities to Add Value to Existing Conversational AI Offerings
Growing Demand for Online Shopping During the Onset of COVID-19
Lack of Accuracy in Chatbots and Virtual Assistants
Maintaining Business Continuity During the COVID-19 Pandemic
Cumulative Growth Analysis
Conversational AI Market: COVID-19 Impact
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